After entering the following K-1 information from a Trust 1041 form into H&R Block’s 1040 software it gives Special Treatment messages for both lines 12 and 14. What do the messages mean? Do they seem like software errors? In the past I have used H&R tax software and it can be rather buggy. I have downloaded the latest updates so that’s not the problem if there is one. I just wanted to make sure that the K-1s generated from the 1041 tax software given to the Beneficiaries’ CPAs for use in their 1040 tax returns aren’t going to cause a problem for them when filing.
Schedule K-1 (Form 1041) 2024
Line 12 - Alternative Minimum Tax Items
Code A - Adjustment for minimum tax purposes:
$1,377
Code J- Exclusion items:
$1,377
====================
Line 14 - Other Information
Code E - Net investment income:
$33,191
Code H - Adjustment for section 1411 net investment income or deductions:
-$33,101
====================
Code in Box 12 Requires Special Treatment
We see that the "Alternative minimum tax adjustment" section of your k-1 includes a code or codes that require special treatment: J ($1,376).
====================
Code in Box 14 Requires Special Treatment
We see that the "Other information" section of your K-1 includes a code or codes that require special treatment: E ($33,191).
For each code listed go to the summarized list on page 2 of this K-1 or the separate Instructions for Beneficiary Filing Form
1040 or 1040-SR or substitute information that you received with this K-1 and find the section that discusses the code.
For any items that you haven't already entered, follow the instructions for how and where to enter the amount associated with the code in your tax return. After you've finished, return to this screen to continue.
